The Association of Mobile Retailers of India (AIMRA) and the Association of Consumer Products Retailers of India (AICPDF) announced calling off their planned October 2 protest, dubbed "No UPI Day," following a meeting between a trade delegation and Union Finance Minister Nirmala Sitharaman, News agency PTI reported citing sources.

The AIMRA had previously announced the protest against a proposed 0.4 per cent merchant discount rate (MDR) on person to merchant (P2M) UPI transactions exceeding 2,000 rupees, arguing that the charge would place an additional burden on small retailers.

A delegation led by BJP MP and CAIT Secretary General Praveen Khandelwal and AIMRA Founder Chairman Kailash Lakhyani submitted a joint request seeking deferment of the proposed MDR, its phased implementation, and revision of the application limit, an official statement said.

The trade bodies also requested that merchant-to-merchant (M2M) transactions be exempted from the MDR, and that an expert committee be constituted to analyse the concerns of the retail and distribution sector.

Instead of introducing the MDR at 0.40% immediately, the delegation proposed that it be introduced at 0.20% in 2026-27 and increased by 0.05 percentage points annually till it reaches 0.40 per cent.

They also requested that the MDR application limit be increased from Rs 1 lakh to Rs 5 lakh, arguing that this would take into account the transaction patterns of traders, the statement said.

Sitharaman listened to the concerns of the delegation and assured them that the issues would be duly considered and addressed. Following this, AIMRA and AICPDF have decided to call off their October 2 protest, the associations said in a statement.

AIMRA had earlier said that the proposed deposit fee would have a negative impact on the already low profit margins of micro, small and medium enterprises, traders and independent retailers who rely on digital payments for their daily transactions.

NO UPI Day Protest Called-Off: FAQs 

  • Why was the "No UPI Day" protest called off?
     
    The protest was called off after a trade delegation met with Union Finance Minister Nirmala Sitharaman, who assured them that their concerns regarding the proposed merchant discount rate (MDR) would be duly considered and addressed.
  • What were the main concerns raised by the retail associations regarding UPI transactions?
     
    The associations argued that the proposed 0.4 per cent MDR on UPI transactions exceeding Rs 2,000 would place an additional financial burden on small retailers and negatively impact the thin profit margins of micro, small, and medium enterprises.
  • What changes did the trade delegation propose to the government?
     
    The delegation proposed a phased implementation starting at 0.20 per cent in 2026-27 with annual increases up to 0.40 per cent, raising the proposed applicability threshold from rs 1 lakh to Rs 5 lakh, exempting merchant-to-merchant transactions, and establishing an expert committee to examine the sector's concerns.
(With Inputs From PTI)